IAFEI Quarterly - 29th Issue

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Dagong Europe Credit Rating
Press Release
Dagong Europe Publishes Commentary:
China’s Foreign Investments at a Record High -
Europe Gaining Importance
Milan, 21 April 2015
Dagong Europe has published a commentary entitled China’s Foreign Investments at a Record
High - Europe Gaining Importance. The research is available to read o
The new report analyses the dynamics and progress of Chinese outward foreign direct investment
(OFDI), identifies the major drivers, and focuses on the position and future role of Europe as a
growing recipient of Chinese capital.
“Global expansion has risen to the top of China’s agenda” says Richard Miratsky, Head of
Corporates Analytical Team at Dagong Europe. “Its foreign investments are expected to pass
USD 120Bn in 2014, the highest ever. We expect this strong growing trend to continue, highlighting
China’s aspiration to invest USD 1.25Tn abroad over the next decade.”
Chinese investment in Europe peaked at USD 18Bn in 2014. “Utilities and high-tech sectors are
definitely holding the attention of Chinese investors, but we see food and agriculture, commercial
real estate and leisure and luxury gaining momentum in the medium term”, adds Mr Miratsky.
Key findings:
 China’s growing foreign investments expected to continue: China is expected to
report a historic peak in foreign investment at over USD 120Bn in 2014. China has been
the world’s 3rd largest foreign investor since 2013, after the US and Japan, moving up
from 33rd position in 2000.
 Focus on high-tech investments drives China’s capital in Europe: The desire to
overcome its comparative disadvantage in high-tech sectors has led to the growing trend
in China’s investments in the utility, energy and manufacturing sectors in Europe. In the
medium to long term there will be an increasing focus on sectors like food and agriculture,
commercial real estate and leisure and luxury.
 China’s investments in Europe hit a record high in 2014: Chinese OFDI in Europe
reached USD 18Bn in 2014. Although crisis-driven low valuations on assets are still an
important driver, the increasing investments in sectors and countries where assets no
longer appear under-priced suggests that this is a structural trend, not just a cyclical
phenomenon.
 China to invest USD 1.25Tn overseas in the next decade: At the end of 2013 China
had accumulated USD 660Bn in OFDIs. This figure is set to grow further as global
expansion has risen on the agenda of China’s political establishment. It has set a goal of
USD 1.25Tn to be invested outside the country over the next decade.
Contacts
Richard Miratsky
Senior Director
Corporates Analytical Team
Marta Bevilacqua
Director
Corporates Analytical Team
Sidney Shin-Yi Dung
Chief Communications Officer
IAFEI Quarterly | Issue 29 | 7